Agenda item

The Capital Programme for 2023-24 to 2026-27 was approved by Full Council in February 2023, with an expenditure budget of £505.9m. The programme was revised to £556.8m following additions agreed by Cabinet in July 2023. The Council often received ringfenced funding in-year from Government and Developers which were added to the programme in a supplementary budget change. Additionally, the programme was reviewed quarterly to check that the profiled spend remained realistic. The report set out the recommended additions and reprofiling for Quarter 2, and also recommended 3 projects to be reduced or removed from the programme. These budget changes would ensure the programme remained realistic and deliverable, and released budget for reinvestment. The recommended changes would increase the 4-year Capital Programme to £582.6m by 2026- 27 and would reduce the 2023-24 current year budget from £149.3m to £124.6m.

RESOLVED that the following Budget adjustments to the Capital Programme be approved:

1. Addition of £5.908m to the programme for new externally funded ringfenced grants and S106 developer contributions.

2. Addition of £2.338m to the programme funded from Corporate Resources, to fund inflationary pressures or new spend on existing, priority projects.

3. Removal of £0.460m for projects which have completed or are no longer proceeding.

4. Reprofile of £24.335m from the current year into future years.

The Capital Programme for 2023-24 to 2026-27 was approved by Full Council in February 2023, with an expenditure budget of £505.9m. The programme was revised to £556.8m following additions agreed by Cabinet in July 2023. The Council often received ringfenced funding in-year from Government and Developers which were added to the programme in a supplementary budget change. Additionally, the programme was reviewed quarterly to check that the profiled spend remained realistic. The report set out the recommended additions and reprofiling for Quarter 2, and also recommended 3 projects to be reduced or removed from the programme. These budget changes would ensure the programme remained realistic and deliverable and released budget for reinvestment. The recommended changes would increase the 4-year Capital Programme to £582.6m by 2026- 27 and would reduce the 2023-24 current year budget from £149.3m to £124.6m.

There were £8.246m of recommended additions to the Capital Programme. In summary:

• £5.908m of new projects funded from external ringfenced funding - £2.567m for new or existing projects funded from ringfenced Government Grants and £3.341m for projects funded by ringfenced s.106 developer contributions. The conditions of this funding meant that it could only be spent on these specific projects.

• £1.738m of additions made up of 2 existing projects were experiencing overspends due to inflationary pressures, the Biowaste Project and Hampden Memorial Chapel. The proposal was to fund these overspends from earmarked reserves (£1.738m); and

• 1 priority project – CCTV control room upgrades £0.600m funded from a contribution from the RCCR (Revenue Contributions to Capital) reserve.

Since the Quarter 1 update to Cabinet, £18.055m of projects had been added to the programme through separate Leader or Key Decisions. This gave total additions to the programme since Quarter 1 of £26.301m. The Cabinet Member for Accessible Housing and Resources also referred to Appendix 1, which showed MTFP Reprofile Detail by Portfolio and specifically mentioned the South East Aylesbury Link Road and that the funding negotiations with HS2 and Homes England were now resolved.

Leader Strategic Infrastructure projects: percentage profiled spend achieved This was mainly due to the South East Aylesbury Link Road project as negotiations had taken longer than expected with the Government and Homes England. This had now been resolved and a Leader decision was awaited. A further paper was expected to come back to Cabinet.

The Cabinet Member for Accessible Housing and Resources also referred to Appendix 1 which showed MTFP Reprofile Detail by Portfolio and specifically mentioned the South East Aylesbury Link Road. Members noted that the Councilremained committed to the delivery of the South East Aylesbury Link Road and continued to be involved in discussions with central government regarding the financing of the project. Securing these funds had taken far longer than anticipated, however a substantial portion of the funding, through the Housing Infrastructure Fund, had now been agreed with Homes England. 

RESOLVED that the following Budget adjustments to the Capital Programme be approved:

1. Addition of £5.908m to the programme for new externally funded ringfenced grants and S106 developer contributions.

2. Addition of £2.338m to the programme funded from Corporate Resources, to fund inflationary pressures or new spend on existing, priority projects.

3. Removal of £0.460m for projects which have completed or are no longer proceeding.

4. Reprofile of £24.335m from the current year into future years.